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____________________COLLEGE OF CRIMINOLOGY__________________
Questioned Document Examination

Course Module 6.1 – COUNTERFEITING

1. Title: Counterfeiting

2. Overview/Introduction
Central banks incorporate various security features in their banknotes and coins to enable
themselves, the general public, retailers, and professional cash handlers to detect counterfeits.
The Bangko Sentral ng Pilipinas has the exclusive power and authority to issue coins and notes
for circulation in the Philippines. The BSP has recently launched enhanced Philippine coins and
notes that are more responsive to the needs of the elderly and the visually impaired, and
feature the latest anti-counterfeiting technology.
3. Learning Outcome/Objective
At the end of the lesson, the students should be able to:
1. Distinguish forgery, falsification, and counterfeiting
2. Know the process of making genuine banknotes
3. Know how to classify genuine banknotes
4. Know the characteristics of counterfeited bill
5. Define coin and know the process of making it
6. Know the characteristics of a genuine coin/metal currency
7. Know the acts penalized under Art. 166 of RA 3815

4. Learning Content/Topic

1. Definition of forgery, falsification, and counterfeiting

2. Process of production of banknote
3. Process of classifying genuine banknotes
4. Characteristics of counterfeited bill
5. Definition of Coin
6. Process of making coins
7. Acts penalized under Art. 166 of RA 3815

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5. Teaching and Learning Activities

A. DEFINITION OF TERMS

FORGERY

Forgery - is a criminal act that takes place when a person falsifies something with
the intent to deceive another person or entity. Forgery usually means falsifying
documents such as checks, passports, driver’s licenses, credit cards, birth
certificates, wills, or identification cards.
A crime that involves making to altering a writing with an attempt to defraud
another person or entity.
Forgery - the action of forging or producing a copy of a document, signature,
banknote, or work of art.
One example of forgery is when someone signs another person’s name to a
document without their permission or knowledge. Another example of forgery is
when someone creates a false government document, such as a driver's license.

FALSIFICATION

Falsification – is the action of changing something, such as a document, to deceive

people. The falsification of a document includes altering a genuine document in any
material part.
Falsification of documents or records involves the alteration or modification of a
document that is done for an illegal purpose.

COUNTERFEITING

Counterfeiting is the unlawful duplication of something valuable in order to deceive.

Counterfeit items include money, coupons, credit or debit cards, clothes, and
jewelry.
Counterfeit money is a currency that is produced without the legal sanction of the
state or government to resemble some official form of currency closely enough that
it may be confused for genuine currency.
Some common synonyms of counterfeit are fake, fraud, humbug, imposture, and
sham. Counterfeit applies especially to the close imitation of something valuable.
Counterfeiting is a hugely lucrative business, with criminals relying on the continued
high demand for cheap goods coupled with low production and distribution costs.

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Counterfeiting normally means making false money, securities, and, sometimes,

consumer products. Footwear is the most counterfeited product in the world.
Synonyms of counterfeit: fake, copied, false, forged. If someone counterfeits
something, they make a version of it that is not genuine but has been made to look
genuine to deceive people.
Authentic goods or products are real and genuine that are sold by brand owners,
distributors, or other authorized parties. Counterfeit goods or products are
imitations of genuine, authentic products that were manufactured without
authorization from the brand owner.
A counterfeit document is the complete fabrication of a security. It affects passports,
driver’s licenses, national identity cards, social security cards, and others.
Combatting counterfeits is achieved by placing numerous security features both
visible and invisible within the documents.

B. PRODUCTION PROCESS OF A BANKNOTE

HOW BANKNOTES ARE MADE

Banknotes can be made using polymer or specially blended paper through an intricate, safe,
and thorough process. Here is some insight into how banknotes are made.
This article is about the production of modern banknotes, the types of materials used, the inks,
the logos, and so forth. We will also take a look at the process of making paper money.
What materials are banknotes made from? You will be surprised that the “paper” used to make
banknotes is actually more than paper, as it is made of a special blend of cotton and linen. The
banknote paper for US currency notes, for example, is 75% cotton and 25% linen. It is this blend
of the two natural materials that makes paper money so durable. That is why banknotes survive
even a thorough washing without tearing up when you forget one in your pockets.

POLYMER CURRENCY NOTES

Not all currency notes are made with the above-mentioned paper. For example, in the UK,
currency notes are made with polymer, which is more durable and counterfeit-proof than
paper money.
Polymer banknotes are made with a thin film of strong, durable plastic. It is said that this
material allows the manufacturer of the banknotes to include clear portions in the note that
cannot be counterfeited easily. Where paper money is more attractive to dirt, grease, and
moisture, it is the exact opposite for the polymer notes since they can resist dirt very well. Thus,
they are considered cleaner and safer.
In the UK, £10 polymer note will be introduced into circulation in the summer of 2017. A twenty
will follow by 2020 and a fiver is already in circulation. At least in the UK, soon paper money will
be phased out by polymer money.

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1. PRODUCTION PROCESS
The production process of paper money is extensive, but we will be covering some of the more
important stages. Every stage of the production is secured and strictly controlled. Every note
that goes into production, even the ones that spoil must be accounted for at the end of the
process.

2. THE DESIGN STAGE

Artwork, graphic design, and the inclusion of all security features that must appear on a note
occur at this stage. Once the design is created, it is submitted to the authorized parties for
approval. Once approved, the banknote will go into the plate making stage.

3. PLATE MAKING STAGE

This is an intricate and long process involving things like color separation. The digital proof
prints produced in the design stage are sent to high precision equipment that will make the
mother plates that will be used for intaglio printing, where the ink that can be found below the
plate’s surface is used for the printing. From these mother-printing plates, the final printing
plates are made.

4. THE PRINTING STAGE

Once the plates are ready, it’s time for the printing of the currency notes. Here, many things
happen, but the first is that a polymer or paper substrate is selected depending on the currency
note that is under production. Then the substrate sheets are subjected to a high-speed rotary
process that will print multi-color background designs and tints both on the front and backsides
of the sheets depending on the designated design.
Then comes the intaglio printing at the back where the substrate sheets come into contact with
the printing plates at high pressure and ink is transferred to the paper or polymer to make 3D
fine lines, which can be felt by hand. These lines are also letters, but ones that can only be seen
under magnification. The substrate sheet then undergoes another round of intaglio printing,
this time on what will be the front-end of the banknote.

5. VARNISHING AND FINISHING

Once the printing is complete, the sheets are varnished to make them more secure. They are
then are stacked in hundreds for cutting. After cutting, each note is passed through a quality
control section where it is inspected for defaults. The approved notes are counted, stacked into
bundles of thousands, and stored so they are ready for delivery.

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C. PROCESS OF CLASSIFYING GENUINE A BANKNOTE

Fake Money vs Real Money: How to Know if Your Cash is Legit

Five hundred counterfeit banknotes with a notional value of ₱480,000―that’s the

amount of fake money that the Bangko Sentral ng Pilipinas (BSP) seized from January to
September 2021. And if you account for the holiday season, there could be more.

While the BSP is doing its best to remove fake money from circulation, fraudsters are coming up
with more sophisticated schemes to have their victims unwittingly accept it. As such, there will
always be a chance that counterfeit cash will land in your hands. Moreover, telling a fake
banknote from a legit one can be quite challenging, especially if you don’t know what to check.

How to Detect Fake Money vs Real Money in the Philippines

When you know what to look for and where to look, you can easily determine fake
money vs. real money. The BSP has come up with a three-step inspection method called FEEL,
LOOK, and TILT. This method is detailed below together with two additional handy tips.

 FEEL

In this step, you’re supposed to feel a note’s tactile cues that will prove its authenticity. Here
are the things you need to check:

 Security Paper – The Philippine banknote should feel different from the usual paper.
After all, it’s primarily made of abaca fiber. It shouldn’t be exaggeratedly smooth.
 Embossed Prints – The note features embossed elements, so you’ll feel a variation of
textures across its surface.
 Tactile Marks – A few pairs of congruent lines on either side of the note are marks that
help visually impaired people to identify and differentiate bills. Furthermore, these
marks are a sign that your note is authentic.

 LOOK

How can you tell the difference between real and fake money? You can tell the difference
between fake money vs. real money by looking at the unique visual features of a note. Here’s
what you need to check:

 Watermark – This is the “apparition” of the faces featured on the bill. If you hold the
note under the light, you’ll see these shadow images on the right side.
 Security Fiber – Security fibers are the thin yet visible lines that are randomly spread on
the front and back of the note. They should come in blue and red.

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 Asymmetric Serial Number – At the lower left and upper right sides of the note, you’ll
find the serial number. This should bear one to two prefix letters and six to seven digits.
The font increases in size and thickness.
 See-Through Mark – At the lower right corner of the note, you’ll notice a
truncated Babaylan script. Hold the money against the light, and the truncated part will
be visible, revealing the entirety of the script. The said script means PILIPINO.

 TILT

Continue your visual inspection by tilting your money. Doing this will reveal features that aren’t
found on fake notes.

 Security Thread – For smaller notes like ₱20 and ₱50, this is the vertical line that runs
across the width of the bill. This line becomes visible when you view your bill against the
light. For larger notes, such as ₱100, ₱200, ₱500, and ₱1,000, the line appears as a
series of metallic dashes featuring the note’s value and the text “BSP.”
 Concealed Numerical Value – At the upper right corner of the bill, you’ll see a smaller
version of the portrait. Tilt the note at a 45-degree angle, and you’ll see the money’s
value over the portrait.
 Optically Variable Ink (for ₱1,000 notes) – The money’s value printed on the lower right
corner of the note should not be only embossed; its color should also change from green
to blue when you view it at different angles. A fake 1000-peso bill doesn’t have this
feature.
 Optically Variable Device Patch (for ₱500 and ₱1,000 notes) – The reflective foil
printed on the left side of the note’s portrait has a hidden visual cue. To check if it's a
fake 500 peso bill or not, tilt your ₱500 note. You’ll see an image of the Blue-naped
parrot. For the ₱1,000 note, you’ll see an image of a clam with the South Sea pearl.
 Enhanced Value Panel (for ₱500 and ₱1,000 notes) – For newer notes, the numerical
value on the left side of the bill should have a color-shifting effect.

 Try Damaging the Bill

Rub some water on the paper bill. If the color smudges and the bill starts tearing, it
could be a sign that the money you have is fake. Remember, the notes are not made of
regular paper, so they shouldn’t come apart even if they're exposed to water. Also, try to
scratch the bill. If the printing smears or shows any sign of damage, it could be
counterfeit.

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 Consider the Changes in Design

From time to time, the BSP releases new money designs. In every release, you should
pay attention to the new elements and features of the notes.

For instance, the 2022 design of the ₱1,000 note features the Philippine Eagle instead of the
country’s World War II Heroes. This new design is part of the polymer or plastic bills that runs
alongside the existing 1,000 peso paper banknotes.[ So, if you receive a ₱1,000 note featuring
the Philippine Eagle that’s not printed on polymer, chances are it’s a fake 1,000 peso bill.

What is the Deal with the New ₱1,000 Banknote?

As part of its commitment to improving banknotes, the BSP has begun the circulation of the
new 1,000 peso bill. As mentioned, these new banknotes are made of polymer.

Using polymer to create the new 1,000 peso bill in 2022 comes with a lot of advantages. The
BSP sums up such benefits in three words: smarter, cleaner, and stronger. Nevertheless, the
country’s central bank breaks them down into five detailed explanations.

 Polymer Money is Smarter

In terms of security, the new polymer banknotes are much smarter. Not only do they have
detailed images, but they also have sophisticated security features that will make
counterfeiting much more difficult.

The ingenuity of polymer money also lies in its eco-friendliness. Even if polymer banknotes are
plastic, producing them actually has less impact on the environment, thanks to their smaller
carbon footprint. Production requires lower energy and water use and is less toxic to Mother
Earth.

Still on its being eco-friendly, polymer banknotes are recyclable. When they’re already
considered unfit for circulation, they can be recycled into other useful items, such as plant pots,
garden furniture, and building materials.
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 Polymer Money is Stronger

The existing paper money can withstand harsh elements. But the new polymer banknotes are
designed to be much more durable. Not only can they weather temperature, but they are also
resistant to water, dirt, oil, and wear and tear. This means that polymer money can last longer
than paper bills.

The BSP notes that polymer money has a lifespan that’s at least two to five times longer than
paper bills. On the central bank’s end, this translates to big savings on printing, replacement,
and distribution costs.

 Polymer Money is Cleaner

The COVID-19 pandemic has changed the way people live. And the arrival of polymer banknotes
is more relevant than ever. The surface of polymer money isn’t only smoother but also non-
absorptive. This means that bacteria and viruses have a significantly shorter survival time in
these new banknotes than in paper money. This is based on the studies reviewed by the
Department of Health (DOH).

Since the new 1,000 peso bill is made of plastic, you can easily sanitize it without worries. You
can have peace of mind, knowing that your banknotes don’t harbor disease-causing germs.

 Polymer Money’s Design is Distinct and Functional

Polymer banknotes have a distinct design and texture, making them easily distinguishable from
paper money. The design is also proudly Filipino, featuring the country’s recognizable flora and
fauna icons, such as the Philippine Eagle, the Sampaguita flower, the South Sea Pearl, and the
Tubbataha Reefs Natural Park.

The BSP says that the new polymer money is more inclusive. This is because it features five
embossed dots that serve as a tactile cue for visually challenged individuals.

 New Polymer Design Represents a Better Change

The release of the new polymer banknotes represents the country’s advancement when it
comes to currencies. The Philippines now joins other countries that use polymer banknotes,
such as Australia, New Zealand, Malaysia, Fiji, Mexico, and Vietnam. According to the BSP,
these countries have experienced a significant reduction in counterfeiting cases after shifting to
polymer money.

The transition to polymer money also appears to be timely. On average, central banks around
the world shift to new money designs every 10 years. In the Philippines, the current set of
banknotes first went into circulation more than a decade ago.
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D. CHARACTERISTICS OF COUNTERFEIT BILL

Step-by-Step Guide to Recognizing Fake Money

Step 1: Look for the watermark. Hold the note up to the light and check for a faint image of the
person featured on the bill. If the watermark is not visible or is different from the genuine bill, it
may be counterfeit.

Step 2: Examine the security thread. Genuine Philippine peso bills have a thin, embedded strip
running vertically through the note. Tilt the bill to see if the security thread changes color from
red to green or moves position. If there is no security thread or it behaves differently, it is likely
fake.

Step 3: Check the serial numbers. Counterfeit bills often have inconsistent or out-of-order serial
numbers. Compare the numbers on the bill to see if they match and are properly aligned. Any
irregularities may indicate a fake bill.

Step 4: Feel the texture of the paper. Genuine Philippine peso bills are printed on special paper
that has a distinct feel. Counterfeit bills may have a different texture or feel unnaturally
smooth. Trust your instincts and compare it with a genuine bill if possible.

Step 5: Look for the ultraviolet (UV) feature. Genuine bills have hidden UV features that can be
seen under a UV light. Check for fluorescent patterns or markings on the bill. If these features
are missing or are different from a genuine bill, it is likely counterfeit.

Step 6: Be attentive to the details. Counterfeit bills often have poor quality printing, fuzzy lines,
or blurred images. Examine the bill closely and compare it to a genuine one, paying attention to
the smallest details. Any noticeable differences could indicate a counterfeit bill.

Step 7: Use a counterfeit detection pen. These specially formulated pens can detect counterfeit
bills by reacting to the type of paper used. Draw a small line on the bill with the pen and wait
for the result. If the mark turns dark or black, the bill may be counterfeit.

Step 8: Trust your intuition. If something feels off about the bill, trust your instincts.
Counterfeiters are constantly improving their techniques, so no guide can cover every possible
fake bill. If you suspect a bill is fake, take it to a trusted bank or financial institution for
verification.

Note: This comprehensive guide is meant to offer general advice on recognizing counterfeit
money in the Philippines. To ensure accuracy, it is recommended to consult official sources such
as the Bangko Sentral ng Pilipinas (BSP) or the Philippine National Police Anti-Cybercrime Group
(PNP-ACG).

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E. PROCESS OF MAKING COINS

COIN - a small, round piece of metal, usually silver or copper colored, that is used
as money.
The methods used to make coins have evolved over the years. Coins were first made
in the ancient kingdom of Lydia well over two thousand years ago. The minting
process for ancient coins was quite simple. First, a small lump of gold, silver, or
copper was placed on a coin die embedded into a solid surface like a rock. The
worker would then take a second coin die, place it on top, and strike it with a large
hammer.
Medieval mints used preformed round discs of metal and a screw press to
manufacture the coins. Although this was a manual process, it was easier and
yielded a more consistent quality than the ancient minting process.

Modern coins are minted with hydraulic coining presses that automatically feed the
blanks into the machine. When the machine is running at full capacity, the press can
make over 600 coins per minute. This speed is necessary for an operation like the
United States Mint, which must produce billions of coins every year.

Although the process is complicated because of the automation used to produce

billions of coins, there are a few common steps that every mint worldwide uses. The
United States Mint is the largest globally, and we will focus on its production
process.

1. Mining Raw Materials

The minting process begins with the mining of raw materials. Mines from across the
United States and worldwide supply gold, silver, copper, or other required metals. The
raw metal obtained from these mines contains impurities that are not acceptable for
coinage.
2. Refining, Melting, and Casting
The raw metal is refined to remove almost all impurities. Some coins require an alloy
of two or more different types of metals. The refined metal is melted, and the
different metals as required by the specifications are added. For example, the United
States Mint makes its five-cent coin from 75 percent copper and 25 percent nickel
alloy.

Once the appropriate purity or alloy is achieved, the metal is cast into an ingot.
These are large metal bars that contain the proper amount of metal as required by
the mint. The metal is checked throughout the process to make sure a suitable purity
is obtained.

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3. Rolling
The process of rolling the ingot to the proper thickness can be long and laborious. The
ingot is rolled between two hardened steel rollers that are continuously moving closer
and closer together. This process will continue until the ingot is rolled into a metal
strip that is the proper thickness for the coin being made. Additionally, the rolling
process softens the metal and changes the molecular structure which allows it to be
struck easier and produces higher quality coins.

4. Blanking
The United States Mint uses rolls of metal that are approximately 13 inches wide and
weigh several thousand pounds. The roll of metal is unwound and flattened to remove
the curvature from the manufacturing process. It is then passed through a machine
that punches out discs of metal that are now the proper thickness and diameter for
the coin being made.

5. Riddling
Up to this point, the production process used to fabricate the metal blanks is dirty and
is ran in a harsh environment. It is possible for small pieces of waste metal to get mixed
in with the coin blanks. The riddling machine separates the properly sized blanks from
any foreign matter mixed in with the coin blanks.
6. Annealing and Cleaning
The mint then passes the coin blanks through in the annealing oven to soften the
metal in preparation for striking. The blanks are then put through a chemical bath to
remove any oil and dirt that may be on the surface of the coin. Any foreign material
can become embedded in the coin during the striking process, and it would have to be
scrapped.

7. Upsetting
To protect the design that’s going to be impressed on the metal coin blank, each coin
blank is passed through a machine that has a set of rollers that get a little bit smaller
and imparts a raised metal rim on both sides of the coin blank. This process also helps
ensure that the coin blank is the proper diameter so it will strike up properly in the
coining press. After this process, the coin blank is now called a planchet.

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8. Stamping or Striking

Now that the planchets have been properly prepared, softened, and cleaned, they are now
ready for striking. Business struck coins are automatically fed into the coining press at a rate
that can reach several hundred coins per minute. Proof coins made for collectors are fed by
hand into the coining press and receive at least two strikes per coin.
9. Distribution

Coins that pass inspection are now ready for distribution. Business struck coins are packed
into bulk storage bags and shipped to The Federal Reserve Bank for distribution to local
banks. Collector coins are placed in special holders and boxes and shipped to coin collectors
around the world.
F. RA 3815 ARTICLE 166

Republic Act No. 3815 (The Revised Penal Code of the Philippines)
Book Two - Title Four
Article 166-169
Chapter One - Section Three
Section Three. — Forging treasury or bank notes, obligations and securities; importing
and uttering false or forged notes, obligations and securities.
Art. 166. Forging treasury or bank notes on other documents payable to bearer; importing, and
uttering such false or forged notes and documents. — The forging or falsification of treasury or
bank notes or certificates or other obligations and securities payable to bearer and the
importation and uttering in connivance with forgers or importers of such false or forged
obligations or notes, shall be punished as follows:
1. By reclusion temporal in its minimum period and a fine not to exceed P10,000 pesos, if the
document which has been falsified, counterfeited, or altered, is an obligations or security of the
United States or of the Philippines Islands.
The word "obligation or security of the United States or of the Philippine Islands" shall be held to
mean all bonds, certificates of indebtedness, national bank notes, fractional notes, certificates of
deposit, bills, checks, or drafts for money, drawn by or upon authorized officers of the United
States or of the Philippine Islands, and other representatives of value, of whatever denomination,
which have been or may be issued under any act of the Congress of the United States or of the
Philippine Legislature.
2. By prision mayor in its maximum period and a fine not to exceed P5,000 pesos, if the falsified
or altered document is a circulating note issued by any banking association duly authorized by
law to issue the same.
3. By prision mayor in its medium period and a fine not to exceed P5,000 pesos, if the falsified or
counterfeited document was issued by a foreign government.
4. By prision mayor in its minimum period and a fine not to exceed P2,000 pesos, when the forged
or altered document is a circulating note or bill issued by a foreign bank duly authorized therefor.
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6. Flexible Teaching Learning Modality (FTLM) adapted

 Module
 Video and Auditory learning

7. Assessment Task

CHAPTER TEST: Answer the following:

1. Distinguish forgery, falsification, and counterfeiting
2. Know the process of making genuine banknotes
3. Know how to classify genuine banknotes
4. Know the characteristics of counterfeited bill
5. Define coin and know the process of making it
6. Know the characteristics of a genuine coin/metal currency
7. Know the acts penalized under Art. 166 of RA 3815

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